USANA Health Sciences Inc (NYSE:USNA) reported financial results for its fiscal fourth quarter and full year ended January 3, 2026, delivering a mixed performance that has elicited a cautiously positive initial market response. The company's headline sales figure met expectations, while its adjusted profit significantly surpassed analyst forecasts. However, the underlying story is one of a business in transition, grappling with a decline in its core operations while investing heavily in newer, omnichannel brands.
Quarterly Performance Versus Estimates
The fourth quarter presented a clear divergence between top-line and bottom-line results relative to Wall Street's expectations. Revenue came in essentially in line with analyst projections, but profitability, as measured by adjusted earnings per share (EPS), delivered a substantial beat.
- Revenue: Reported net sales of $226.2 million represented a 5.9% year-over-year increase. This figure was slightly below the analyst consensus estimate of approximately $230.5 million.
- Adjusted EPS: The company reported adjusted diluted EPS of $0.60. This outperformed the analyst estimate of $0.42 by approximately 46%, a significant positive surprise driven by operational performance and one-time factors.
The market's immediate reaction, reflected in after-hours trading, was positive, with shares rising. This suggests investors are focusing on the earnings beat and the company's forward-looking guidance rather than the slight revenue miss.
Full-Year Results and Forward Guidance
For the full fiscal year 2025, USANA reported consolidated net sales of $925.3 million, an 8% increase over the prior year. This growth was primarily fueled by the inclusion of Hiya, a children's wellness brand acquired in 2024. Notably, sales in the core nutritional direct-selling business declined by 8%, highlighting the ongoing challenges in that segment.
Looking ahead, management provided an outlook for fiscal 2026 that appears to have been a key driver of the positive market sentiment.
- Revenue Guidance: The company expects consolidated net sales between $925 million and $1.0 billion. The midpoint of this range, $962.5 million, is slightly above the current analyst consensus estimate of approximately $975.3 million for calendar 2026 sales.
- EPS Guidance: USANA forecasts adjusted diluted EPS between $1.95 and $2.29 for FY2026. The midpoint of this guidance, $2.12, is above the provided analyst estimate of $0.41 for Q1 2026, though a direct full-year comparison to analyst estimates is not provided in the context. The guidance implies confidence in a recovery in profitability.
Press Release Highlights and Strategic Shift
The earnings report underscored a company navigating a significant strategic pivot. Key takeaways from the release include:
- Core Business Challenges: The core nutritional business, which operates through a direct-selling model, saw a 15% year-over-year decline in active customers to 387,000. Sales in this segment fell 8% for the full year. Management acknowledged a "challenging environment for customer acquisition" but noted signs of stabilization in the fourth quarter.
- Omnichannel Diversification: A central theme of the report was the successful diversification beyond the legacy direct-selling channel. Brands outside the core business—namely Hiya (direct-to-consumer children's vitamins) and Rise Wellness (nutrition bars and protein pops)—represented 16% of total sales in 2025, up from just 1% in 2024. The company expects this share to exceed 20% in the coming year.
- Investment and Charges: The quarter was impacted by significant one-time charges, including a $7.0 million non-cash impairment charge related to a decline in the company's market capitalization and a $6.5 million cost realignment charge. These items resulted in a GAAP net loss for the quarter but were excluded from the adjusted earnings figures.
- Strong Balance Sheet: The company ended the year with a robust net cash position ($158 million in cash vs. $14 million in debt), providing flexibility to continue its strategic investments.
Market Reaction and Conclusion
The initial positive market reaction to USANA's earnings suggests investors are approving of the company's strategic direction and its ability to exceed profit expectations despite top-line pressures. The beat on adjusted EPS and the issuance of revenue guidance that meets or exceeds analyst estimates for the coming year are likely the primary catalysts.
The story of USANA is increasingly a tale of two companies: a legacy direct-selling operation facing headwinds, and a growing portfolio of omnichannel brands showing promise. The success of Hiya and Rise Wellness is critical to the company's future growth, and management's commentary expressed strong confidence in their trajectories for 2026. For now, the market is rewarding the profit beat and the strategic roadmap, choosing to look past the ongoing struggles in the core business.
For a detailed look at historical earnings, future estimates, and analyst projections for USANA Health Sciences, visit the earnings and estimates page on Chartmill.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
